U.S. markets close after volatile day


U.S. markets close after volatile day

U.S. markets plunged 1,000 points during morning trading Monday following a big drop in Chinese stocks. However the markets rallied but the Dow Jones industrial average still closed down almost 600 points. Analysts say it was a needed correction after a multiyear run.

  • U.S. markets plunged after opening Monday

    NEW YORK (AP) — U.S. markets plunged at the open Monday following a big drop in Chinese stocks.

    The Dow Jones industrial average fell more than 1,000 points in early trading.

    The Dow was 783 points, or 4.8 percent, lower as of 9:40 a.m. Eastern time. The Standard & Poor’s 500 index dropped 87 points, or 4.5 percent, to 1,882. The Nasdaq composite fell 247 points, or 5.1 percent, to 4,465 points.

  • China's stock market suffers biggest one-day fall since 2007

     China’s stock market fell Monday by its biggest margin in eight years,
    defying the government’s multibillion-dollar effort to stop a slide that
    has wiped out the gains of this year’s price boom.

    Read the full story here

    A Chinese investor monitors stock prices at at a brokerage house in
    Beijing, Monday, Aug.
    24, 2015. Stocks tumbled across Asia on Monday as
    investors shaken by the sell-off last week on Wall Street unloaded
    shares in practically every sector.
    (AP Photo/Mark Schiefelbein) 

  • Analyst to investors: Stay calm in face of Monday's tumbling markets 

    Stay calm, stick with your plan, remember the upside -- and yes, there is an upside, says CBS News business analyst Jill Schlesinger.

    Read the full story here.

  • Why stocks are tumbling 6 years into the bull market

    WTOPNEW YORK (AP) — Well, that was fun while it lasted. For years, investors in U.S. stocks shrugged off threats — a government shutdown, fear of a euro collapse, a near U.S. debt default —…
  • Analyst: 'A very violent shakeout' for U.S. stocks

    WTOPThe skittishness seems to be over, says Michael Santoli, a senior columnist for Yahoo! Finance, tells WTOP. “We’ll see if the floor was set in the morning.”
  • NYSE Deploys Measures to Ensure Orderly Trading: wsj.com/articles/nyse-…

  • Computers may have been behind Monday's initial plunge - Jeff Clabaugh, Washington Business Journal

  • (AP Photo/Joshua Paul) 

    Chinese stocks tumble again as other Asian markets rebound

    BEIJING (AP) — Chinese stocks tumbled again Tuesday after their biggest decline in eight years while most other Asian markets rebounded from a day of heavy losses.

    The Shanghai Composite Index fell 6.4 percent in the first minutes of trading but later trimmed some of those losses and was down 5.5 percent at 3,035.83. The Shenzhen Composite Index for China’s smaller second exchange lost 4.6 percent.

    Tokyo’s Nikkei 225, however, was up 2.1 percent at 18,147.42 after losing 4.6 percent the previous session. Hong Kong’s Hang Seng, which also lost 4.6 percent on Monday, gained 1.3 percent to 21,429.17. Sydney’s S&P ASX 200 advanced 1.4 percent to 5,073.20 and Seoul’s Kospi was steady at 1,829.06 after shedding 3 percent the previous day.

    China’s fall was the latest in a series of jarring declines that have defied multibillion-dollar government efforts to stem a slide in prices following an explosive market boom.

    Monday’s 8.5 percent loss for the Shanghai index triggered a global selloff.

    On Wall Street, the Dow Jones industrial average lost 3.6 percent. The Standard & Poor’s 500 fell 3.9 percent, putting it in correction territory, the term for a drop of at least 10 percent from a recent peak. In Europe, Germany’s DAX index fell 4.7 percent, France’s CAC-40 slid 5.4 percent and Britain’s FTSE 100 lost 4.7 percent.

    “There was no clear catalyst for the global stock meltdown. The lack of clarity makes it difficult to assess what is needed to stem the rout,” said Bernard Aw of IG Markets in a report.

    “A coordinated policy response is critical, and much of this needs to come from Asian economies,” Aw said. “A spate of better economic news may help to allay concerns that global growth is not deteriorating. Certainly, improvements in the Chinese economy will be welcomed.

    China’s declines reflecting the cooling of a market boom that was driven by official policy and cheerleading from the government press, rather than by economic fundamentals. The Shanghai index rose 150 percent beginning late last year even as the world’s second-largest economy was cooling, leaving little to support higher prices once investor enthusiasm faltered.

    Read more on WTOP.com. 

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